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JAMB Commerce 2003 Question 43

Question 43

Business Finance

A source of short-term finance to companies is

  1. A.share capital
  2. B.debentures
  3. C.retained earnings
  4. D.corporate tax
Show the answer and explanation

Answer: C (retained earnings)

Explanation

Share capital and debentures are long-term; profits kept back (retained earnings) can be used to meet short-term needs.